Businesses, such as banks, automobile dealerships, credit card companies, mortgage companies, insurance companies, investment companies, and the like, handle numerous types of business transactions. Examples of business transactions may include purchasing a vehicle, obtaining a mortgage, opening a checking account, buying an insurance policy, applying for a credit card, and the like. These transactions often involve legal documents (e.g., contracts, agreements, etc.) that require some type of signature by the consumer as evidence of his/her knowing consent to the terms and conditions of the transactions.
The legal documents have traditionally been paper documents and the signatures have historically been handwritten. However, with the passage of the federal Electronic Signatures in Global and National Commerce Act (E-Sign) on Jun. 30, 2000, businesses may now obtain consent from consumers electronically. In brief, E-Sign grants electronic signatures and documents equivalent legal status with traditional handwritten signatures. The Act defines an electronic signature as an “electronic sound, symbol, or process, attached to or logically associated with a contract or other record and executed or adopted by a person with the intent to sign the record.”
One result arising out of E-Sign is the acceptance of voice signatures as a permissible form of electronic signature. A voice signature, in general, is an audio recording created by an individual who intends to sign a particular document or transaction. The voice signature may be provided to a live customer service representative who records the voice signature, or it may be provided to an interactive voice response system that captures the voice signature.
Because of the above, many businesses have begun incorporating the use of voice signatures into their business processes. Thus, a consumer calling a company's customer service representative regarding a transaction may now be given the opportunity to enter into and complete that transaction, or even another transaction, during the same call. In a typical scenario, the consumer is provided with the terms and conditions of the transaction during the call (including any notices and disclosures) and may then accept or consent to that transaction verbally.
In order for the voice signature to be effective under E-Sign, however, the consumer must demonstrate that he/she can access the terms and conditions (and any notices or disclosures therefor) in electronic form. There are currently two accepted methods for presenting such information to the consumer: (1) the consumer is read the terms and conditions (and any notices or disclosures therefor) over the phone; or (2) during the call, the consumer is directed to a Web site where the information may be viewed. After hearing or reading the terms, the consumer may signify his/her consent by speaking or otherwise activating a voice signature (e.g., “If you agree to the terms that were read to you, then sign the agreement by pressing #1 or stating ‘Yes’”).
The above arrangement is ineffective, however, when a lengthy legal document must be read to the consumer over the phone. Oftentimes, the consumer simply opts out of the transaction rather than listen to a long legal message or getting on a computer and logging on to some Web site. In addition, some businesses impose a per minute charge on the consumer for the time he/she spends with the company's customer service personnel on the phone.
Accordingly, what is needed is a more effective way to capture consumer voice signatures in connection with business transactions. More specifically, what is needed is a way for businesses to present the terms and conditions of the transaction (and any notices or disclosures therefor) to the consumer over the phone without requiring him/her to listen to a long legal message or getting on a computer and going to a Web site.